Astral unveils new digital streaming service as BCE merger up in air

Astral Media unveils TMN GO streaming service

TORONTO — Astral Media Inc. is finally ready to take the wraps off its new online and mobile streaming service after working for more than a year to launch the product even as its merger with BCE Inc. remains up in the air.

The Montreal-based company announced during its annual general meeting in Toronto Wednesday that it would make the new product, The Movie Network GO, available to some of its existing subscribers immediately.

The service – which lets subscribers access Astral’s TMN, HBO Canada and TMN Encore content on up to five devices per household through mobile apps or their web browsers – is part of a retention strategy, said Domenic Vivolo, senior vice-president of sales and marketing at Astral’s television division.

“If we can convince [subscribers] to do one more month, two more months, it means millions of dollars,” he said.

As consumers increasingly access content online and inexpensive alternatives like Netflix Inc. loom large, traditional television providers are looking for ways to convince their subscribers to stick around such as services like this that complement their offering at no additional charge.

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Astral, Canada’s largest pay and specialty television broadcaster, has about 1.2 million customers who subscribe to its TMN and HBO offering through their television providers, Mr. Vivolo said.

It is initially launching its TMN GO service with Bell Fibe, Bell Satellite and Cogeco Cable customers in Eastern Canada and will make it available to Rogers Communications Inc. customers “in the coming weeks” with the remaining television providers to follow.

The mobile app is currently available on most Apple Inc. iOS devices with other platforms including Android to follow in the future.

The so-called “TV Everywhere” service follows in the footsteps of Time Warner’s HBO Go platform in the United States and a similar offering by Corus Entertainment Inc. (which co-owns HBO Canada with Astral).

If we can convince [subscribers] to do one more month, two more months, it means millions of dollars

Corus launched the Go service last September with Shaw Communications Inc., which has substantial cable assets in Western Canada and is employing the strategy in a bid to fend off competition from IPTV services offered by telecom rivals, especially Telus Corp.

The Canadian Radio-Television and Telecommunications Commission is expected to make the terms of BCE’s renewed bid to acquire Astral public shortly.

Astral owns 25 television services, more than 80 radio stations and a billboard advertising business.

The broadcast regulator rejected BCE’s initial $3-billion bid in the fall on the grounds that it left too much of the domestic media market in Bell’s hands and the two companies submitted a new proposal on Nov. 19.

Ian Greenberg, president and chief executive of Astral, said at Wednesday’s shareholder meeting that he was disappointed at the initial rejection but optimistic about the prospects for the current bid.

“We’re now confident that we have a solid understanding of the CRTC’s concerns and have developed a revised application that directly addresses these issues,” he said.